Do we need OCI card to sell property in India?

Asked by: Bianka Corwin  |  Last update: October 26, 2023
Score: 4.4/5 (35 votes)

The Reserve Bank of India, in a clarification issued on Wednesday, has said that non-resident Indians (NRIs) and overseas citizens of India (OCIs) do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land, farm house or plantation property, as per the ...

Can I sell my house in India from USA?

Is it possible to sell property in India if you are a Non Resident Indian (NRI) currently living in the US? The answer is yes, but the real estate process can be cumbersome. Often selling Indian property isn't the hardest part. Getting the funds to the US is tricky, and the sale may have unanticipated tax implications.

Can OCI buy and sell property in India?

Can an Overseas Citizen of India (OCI) buy property in India? Yes, an OCI cardholder can buy property in India as long as it is not agricultural land, a plantation property, or a farmhouse. An OCI can also receive a property as a gift, as long as it is from an Indian resident relative.

Can I sell property with OCI?

OCI Card Holders Are No Longer Allowed To Buy and Sell Properties In India.

What documents are required for NRI to sell property in India?

Required Documents For Selling a Property In India Owned By An NRI
  • Passport – his legal document serves as proof of identity for the party conducting the transaction.
  • PAN Card – This document is necessary if you want to file for a tax-exempt status certificate after you buy a property.

NRIs Selling Property In India - All that you need to know - By D B Mehta

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How can I sell my property in India by NRI?

Documents required by NRI for selling property in India:
  1. Passport- It serves as a proof of identity for the person involved in the transaction.
  2. PAN Card- It is required if one plans to apply for a tax exemption certificate after the sale of the property.

What happens if NRI sell property in India?

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable. NRIs can claim exemptions under Section 54, Section 54 EC, and Section 54F on long-term capital gains.

What is the new OCI rule?

It allows them to live and work in India indefinitely but does not grant citizenship or voting rights. In 2021, new rules were introduced, requiring OCI cardholders to seek permission for certain activities. Violating the rules can result in penalties and even blacklisting.

Can a US citizen inherit property in India?

A Non-Resident Indian or a Foreign national such as UK, US or Canadian citizens can inherit the property in India from anyone including their relatives. The NRI can inherit property in India even from another NRI, subject to certain conditions.

Are OCI card holders no longer allowed to buy and sell properties in India?

Can an Overseas Citizen of India (OCI) card holder or NRI buy/sell real estate in India? A. As per the guidelines issued by Reserve Bank of India, an NRI or OCI card holder can invest in any residential or commercial property.

Can we sell property in India and bring money to us?

Prior to transferring funds from India to the US you'll need to complete Form 15CB, and your bank will ask you to provide proof of the source of the money, such as a copy of the property sale agreement.

Can an NRI sell property in India without visiting India?

Digital India has indeed made our lives easy and this is one of such examples. An NRI can sell property anytime but he or she will need some documents like: Title of the property (which is in the seller's name) Occupation Certificate from the municipal corporation in India.

Can OCI sell property in India with power of attorney?

As per the Registration Act, 1908, whenever an NRI sells or purchases a house property, both parties must be present physically while registering the transaction. If the buyer or seller is not present to sign the documents, a trusted person can be appointed as the Power of Attorney.

What happens when a US citizen sells property in India?

You'll also usually need to pay tax on the sale, including capital gains tax. If you're selling a property as a NRI, the buyer will be required to retain tax deducted at source (TDS) of 20% of the capital gain in most cases. If you've owned the property for less than 2 years, you may need to pay 30% capital gains tax.

Can a foreign citizen sell his property in India?

As per the 1973 Act, any person who is not a citizen of India or any company which is not incorporated in the country is required to get permission from RBI to acquire, hold, transfer or dispose an immovable property in the country.”

Is property sold in India taxable in US?

The U.S. is one of only a few countries that taxes you on worldwide income — and gains made from foreign property sales are considered foreign income.

What is the tax on selling property in India?

The rate of LTCG Tax is 20%. This is over and above the regular income tax payable by the seller, on the income earned through salary or business profit. Similar to SCTG, the LTCG is the difference between the purchase price and sale price of the property.

What happens to property in India if there is no will?

As per the Hindu Succession Act, 1965, if a person dies intestate, his property would go to Class I heirs. If the Class I heirs do not exist, then the property would be delegated to Class II heirs. However, if both the Class I and Class II heirs are not alive, then the property would be transferred to Agnates.

How do I transfer inheritance from India to USA?

Transfer of inheritance money to the USA

You only have to pay the US inheritance tax if the deceased was a US citizen, citizen or green card holder. However, you must still report your inheritance to the IRS by submitting Form 3520 along with your annual tax return.

How long a US citizen can stay in India with OCI?

An OCI card holder can stay in India for life time. It is important for an OCI card holder to ensure that they hold valid passports from their home country. In case the passport needs to be renewed then the OCI card holders have to get it renewed visiting their home country embassy in India.

How long does it take to get OCI card in USA?

Kindly note that normal processing time for a new OCI application (based on Indian origin) is 4-5 weeks from the date of registration of the application in the Consulate whereas for re-issuance/updation of OCI Cards, it is 5-6 weeks.

Can NRI sell property in India below 50 lakhs?

Moreover, this TDS on purchase of Property from NRI is required to be deducted irrespective of the Transaction Value of the Property. Even if the value of property is less than Rs. 50 Lakhs – this TDS is required to be deducted.

How to avoid capital gains tax on sale of property in India?

Investing in Bonds

One of the ways to save on your capital gains tax is to invest in bonds within six months of the trading of the property and receiving the gains. On investing in bonds, you can claim a tax exemption under Section 54EC of the Indian Income Tax Act, 1961.

Is land taxable in India if you sell it?

Capital Gains Tax on Sale of Land

In the case of STCG, the profits generated in the process of selling land is included in the taxable income of the owner and he/she has to pay taxes depending on the income tax slab they fall in for that particular financial year. For LTCG, the current tax rate is 20%.